Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

26 April 2016

IPE: European Commission should pursue EU-wide fiduciary duty definition


Brussels-based think tank Bruegel has suggested the European Commission should seek an EU-wide definition of “fiduciary duty”, echoing a call made by Aviva Investors in its response to a consultation the asset manager said could be “a game changer”.

In a paper prepared for an informal meeting of EU member state economic and finance ministers, the think tank warned that the “unsustainable” use of the environment represented an economic imbalance that could lead to financial crisis.

A Commission briefing note for the meeting discussed the financial-stability risks linked to the ongoing efforts to limit global warming and how the financial policy framework could contribute to an orderly transition.

Bruegel, for its part, identified various policy solutions to the financial risks posed by climate change, including that the European Commission “could provide greater stability through an EU-wide definition of fiduciary duty” and “join investors in their call for the Organisation for Economic Cooperation and Development to consider a convention on fiduciary duty and long-term investing”. As acknowledged by the think tank, these positions are shared by others, with Aviva cited as an example.

Indeed, the call for an EU-wide definition of fiduciary duty and the involvement of the OECD is one of five key recommendations Aviva Investors set out in its response to a European Commission consultation on sustainable and long-term investments.

Full article (IPE subscription required)

Bruegel paper



© IPE International Publishers Ltd.


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment